The Monetary System - 07 January 1998
First Monetary Mutual Limited - INTERmoNETary System


Reinventing First Monetary with the
Monetary System and P/R/O/F/I/T

In a groundbreaking decision, First Monetary’s Board of Directors approved a sweeping business plan that expands the scope of the company’s operations. The new business plan calls for broadening FM’s insurance lines beyond D&O and Employment Practices Liability coverage and creating a service arm to support and market new products.

The first program actively pursued is the formation of a captive program allowing community banks to provide mortgage guarantee products. First Monetary’s Mortgage Guarantee Program will launch in the second quarter of 1998.

Service Arm Uses
"Economies of Skill"
to Provide Big Bank Support Services


Beyond a product line expansion, P/R/O/F/I/T provides for the rapid and full scale development of risk, knowledge and promotion management services to increase member capabilities in five strategic business areas --

P roduct promotion
R isk management
O perations
F inance
I ntelligence
T echnology

Support will be rendered through a newly created service arm of the company called the MONETARY SYSTEM. This integrated resource leverages the extensive technical capabilities of First Monetary’s support businesses to make professional MIS and marketing support services available to community banks that lack time, money, and resources to develop and maintain these important functions internally.


From on-line newsletters to web-based regulatory bulletin boards, from professional database marketing and desktop publishing services to virtual human resource departments, the MONETARY SYSTEM levels the competitive playing field and gives First Monetary Members big bank capacities in planning, compliance, control and business development.


MORTGAGE GUARANTEE INSURANCE:
A Ground Floor Opportunity for Community Banks

Awakening to their profit potential, large commercial banks are scrambling to form insurance subsidiaries and get into the lucrative market for mortgage insurance. In a bold move to let community banks compete and share in this budding opportunity, First Monetary Mutual Limited is pushing ahead with a program that allows member banks to offer mortgage guarantee products and profit by participation.

Since First Monetary is an established, Bermuda-based captive insurance company, the company is uniquely positioned to implement a program faster and less expensively than the competition, because it can bypass the most time-consuming organization and regulatory requirements.

This advantage creates ground floor opportunities for First Monetary members to get into the business of insurance quickly, at little cost and with minimal risk.Backed by a Leading Investment Company First Monetary already has a working agreement with a leader in the field of mortgage guarantee insurance to structure a program for the FM membership. Details will be finalized by the March Board of Directors meeting, three months prior to the shareholder's meeting launch date.

A Very Attractive Incentive Package

Since a larger number of Mortgage Guarantee participants will increase underwriting credibility and positively influence the initial rate setting process, First Monetary Mutual Limited is offering a one-time package of attractive incentives to any bank that signs on to the program before the start-up date scheduled for June, 1998. Benefits include:

  • A preferred pass-through arrangement
  • A lower annual membership fee
  • Priority capital reinvestment consideration
  • Free INTERmoNETary System Web/E-mail Site
  • Discounts on D-base marketing & DTP services


$100,000 Shareholder Dividend Declared
First Monetary’s balance sheet remains rock solid. Based on the excellent financials as at 31 December 1997, First Monetary’s Board of Directors again approved a dividend distribution in the amount of $100,000.

The dividend will be distributed at the Annual Shareholders Meeting 15 June, 1998 on a pro-rated basis pegged to the value of member accounts on 31 December 31, 1997.


New Mortgage Lending Coverage
In the policy improvement area, First Monetary will add Mortgage Lending Coverage to existing policy coverages in 1998.

This unique benefit covers wrongful acts of discrimination in lending operations covered by Federal and State Statutes, including CRA. This coverage is being added at no cost and does not require a separate policy.


A-Rating for FM Reinsurer Top
Offshore, the business combination involving First Monetary’s reinsurer resulted in a favorable S&P reassessment of the company’s rating.

Fairfax Holdings acquisition of Sphere Drake ensures that the company will carry an A-rating in 1998.

 

FRAMES - OFF FRAMES - ON
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97 CONVENTION
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1998 CONVENTION
MONITOR
WHAT"S NEW
BERMUDA LINKS SEND EMAIL INFORMATION REQUEST
First Monetary Products
PRIMARY D&O
LIABILITY
WRAP D&O
LIABILITY
EMPLOYMENT PRACTICES LIABILITY PRIVATE MORTGAGE

 

First Monetary Mutual Limited
33/35 Reid Street
Hamilton, Bermuda MF CX
Information: 441.295.2470
INTERmoNETary System - Information: 800/222-2463
Revised: 2:43 AM 3/2/98 [fs]